Different Types of Trading

[Nowler]

Hello folks!

I don't believe it's good enough to have a general idea when it comes to trading, so for that reason I feel I should make every effort to understand this fully.

How many different types of trading is there?
Is it just Stocks and Derivatives over all and then one could further breakdown derivatives to forex, commodities etc...

I'd really appreciate it if someone could help me break this down.

 

[Quantt]

Hello folks!

I don't believe it's good enough to have a general idea when it comes to trading, so for that reason I feel I should make every effort to understand this fully.

How many different types of trading is there?
Is it just Stocks and Derivatives over all and then one could further breakdown derivatives to forex, commodities etc...

I'd really appreciate it if someone could help me break this down.

No break down from me, I am not a trading scholar , but here is my take on what I do and don't trade and why... I trade something that is not very complicated, will not expire in the future, no need for leverage, so pretty much I am left with stocks only, and I don't trade ETFs (few exceptions) and especially no leverage ETFs...

The US stock market consists of few thousand companies, so the chances are I'll have something to trade few times a week - the average for me is a 1 trade every two days or approx 2 trades a week...

 

[NVP]

Hello folks!

I don't believe it's good enough to have a general idea when it comes to trading, so for that reason I feel I should make every effort to understand this fully.

How many different types of trading is there?
Is it just Stocks and Derivatives over all and then one could further breakdown derivatives to forex, commodities etc...

I'd really appreciate it if someone could help me break this down.

2 types of trading :-

Winning trading
Losing trading

try to get into the 1st group eventually ......

N :smart::innocent:

 

[Nowler]

Are Futures and Derivatives just synonyms for the same thing?

So in trading, you can trade the stock, as in you own the stock or you can trade futures/derivatives which is basically speculation on whatever instrument...?

 

[FXX]

Are Futures and Derivatives just synonyms for the same thing?

So in trading, you can trade the stock, as in you own the stock or you can trade futures/derivatives which is basically speculation on whatever instrument...?

Futures

Two parties agree in a futures contract to buy a tangible or intangible product or asset at a specified price and on a specified future date. The traded asset is called the underlying and may be a commodity, currency, interest rate, stock market index or catastrophic insurance loss. The trade date is called the settlement or maturity date. The agreed price is called the futures price. Both parties are obligated to carry out the contract.

Derivatives

Derivatives are contracts whose value derives from something else. It can be the variation over time of a commodity price, exchange rate, stock market index or bank deposit. It also could be the variation of a commodity price against a stock market index. Technically speaking, a futures contract is a derivative. An option is a derivative contract where a seller offers a buyer the right, but not an obligation as in the case of futures, to buy an asset. They specify both the price, the strike price and the date, the exercise date, of the transaction. A swap is a derivative contract where two parties exchange cash flows, such as interest rate payments. The interest rate calculations are agreed and the two sides are obligated to the deal. There are also combinations of swaps and options called "swaptions."

 

[Nowler]

Futures

Two parties agree in a futures contract to buy a tangible or intangible product or asset at a specified price and on a specified future date. The traded asset is called the underlying and may be a commodity, currency, interest rate, stock market index or catastrophic insurance loss. The trade date is called the settlement or maturity date. The agreed price is called the futures price. Both parties are obligated to carry out the contract.

Derivatives

Derivatives are contracts whose value derives from something else. It can be the variation over time of a commodity price, exchange rate, stock market index or bank deposit. It also could be the variation of a commodity price against a stock market index. Technically speaking, a futures contract is a derivative. An option is a derivative contract where a seller offers a buyer the right, but not an obligation as in the case of futures, to buy an asset. They specify both the price, the strike price and the date, the exercise date, of the transaction. A swap is a derivative contract where two parties exchange cash flows, such as interest rate payments. The interest rate calculations are agreed and the two sides are obligated to the deal. There are also combinations of swaps and options called "swaptions."

So what am I trading?
Haha, this is silly that I had to ask that at this stage but I have just adapted to the second type of trading I came across. I tried options for a week and lost €70 so I really know anything other than what ive been doing...

All i know is I trade forex and oil with Oanda and im aloud to bet money that a particular move in price is going to happen. I can either manually manage the duration of the trade or I can set take profit targets and stop losses. I can get out of the trade any time I want...

Im beginning to wonder how much different working in a futures prop firm would differ to how I trade now.

 

[FXX]

So what am I trading?
Haha, this is silly that I had to ask that at this stage but I have just adapted to the second type of trading I came across. I tried options for a week and lost €70 so I really know anything other than what ive been doing...

All i know is I trade forex and oil with Oanda and im aloud to bet money that a particular move in price is going to happen. I can either manually manage the duration of the trade or I can set take profit targets and stop losses. I can get out of the trade any time I want...

Im beginning to wonder how much different working in a futures prop firm would differ to how I trade now.

Slow down. Spend some time reading about all the different instruments you can trade and the markets traded. Then choose the one you like most and stick with it.

There are plenty of opportunities in all markets so don't worry about missing out. The information that will make you money lies in understanding the drivers of your market. Think of it as a rigged boxing match where you match the weakest against the strongest.

 

[Nowler]

Slow down. Spend some time reading about all the different instruments you can trade and the markets traded. Then choose the one you like most and stick with it.

There are plenty of opportunities in all markets so don't worry about missing out. The information that will make you money lies in understanding the drivers of your market. Think of it as a rigged boxing match where you match the weakest against the strongest.

I'm not worried about missing any opportunities in the market.
I just want to know more about what I am and what I could be doing.

If I get an interview with this crowd I applied to i'd like to have some idea of what's going on and what futures are about. Knowing how that differs to what I am doing now is integral to being able to discuss how I can be of use to them. How can I highlight my decent potential via my current trading results (stopping the hemorrhaging of money) and then convert that into how I could apply it with them in the futures? I dont even know if I am trading futures or not.

I like being able to plan ahead.

 

[Nowler]

I dont even know if I am trading futures or not.

Futures vs Spot Forex?
Am I spot forex now?
How does futures differ to spot forex?

These are all the things flying through my head now

 

[rakhi123]

There are Different Types of Trading Styles are available Intraday trading,Swing trading,High-frequency trading.

 

[gerryg]

2 types of trading :-

Winning trading
Losing trading

try to get into the 1st group eventually ......

N :smart::innocent:

Thnx
nice advice it was really helpful, right after reading this the order hit TP.
Many thanks again you'd spent a lot of time to hit upon this precious thought

 

[mpups]

There are Different Types of Trading Styles are available Intraday trading,Swing trading,High-frequency trading.

did you read this on investopedia?

 

[Robbe]

You're right, it all comes to that everybody wnats to get to the first category of successful traders. And everybody does in their own way. Even if you just copy trades, youu can make quite good money. I don't see anything bad about that.

 

[Tytus_Barnowl]

So what am I trading?
Haha, this is silly that I had to ask that at this stage but I have just adapted to the second type of trading I came across. I tried options for a week and lost €70 so I really know anything other than what ive been doing...

All i know is I trade forex and oil with Oanda and im aloud to bet money that a particular move in price is going to happen. I can either manually manage the duration of the trade or I can set take profit targets and stop losses. I can get out of the trade any time I want...

Im beginning to wonder how much different working in a futures prop firm would differ to how I trade now.

Be seiously seriously careful about working for a futures prop firm or any prop firm for that matter. Their target is usually YOU. You mention "bet money". Is this written in to your trading plan???? You tried Options for a week???? To cap it all you cannot even spell "allowed". Trading involves a whole lot more than that. There are brilliant people on here ready to tear your weaknesses to shreds so
you have something to build up on. You should be the only one who knows your weaknesses because you have written in your trading plan how you are going to overcome them. Good points we play to naturally, bad points we have to overcome because good does not cancel out. Each one of your weaknesses can wipe you out as a trader.

 

[FXPIPa]

Hello folks!

I don't believe it's good enough to have a general idea when it comes to trading, so for that reason I feel I should make every effort to understand this fully.

How many different types of trading is there?
Is it just Stocks and Derivatives over all and then one could further breakdown derivatives to forex, commodities etc...

I'd really appreciate it if someone could help me break this down.

you need experience
1 man like Scalping, other like long term Fundamental trading based on Forex News Calendar trading, other people like MAthematic based automated systems, pipsing, indicators... etc) also in market there lots of instruments. Now many traders trade Bitcoin.. not only FX pairs or Stocks

But first of all when you start trading at real account you must learn broker conditions and client agreement, some brokers do not accept scalping and swing type, some brokers say that you do not have to cloe order < 6 pips of profit, or pause between orders must be > 5 min..etc, very careful with that

 

[Nowler]

you need experience
1 man like Scalping, other like long term Fundamental trading based on Forex News Calendar trading, other people like MAthematic based automated systems, pipsing, indicators... etc) also in market there lots of instruments. Now many traders trade Bitcoin.. not only FX pairs or Stocks

But first of all when you start trading at real account you must learn broker conditions and client agreement, some brokers do not accept scalping and swing type, some brokers say that you do not have to cloe order < 6 pips of profit, or pause between orders must be > 5 min..etc, very careful with that

Thank you very much for the input sir.

I have look a little into some of the terms between my broker and I, such as checking to see if scalping was permitted. But I should look more closely.

Thanks

 

[mason_ritter]

I think the question was more about the types of instruments one can trade rather than the types of analysis.

 

[Merk Porter]

Trading has been an income source for many people around the world today. Trading activities are basically being conducted from two basic types of financial market. Centralized market where equities, bond and futures, etc. are being traded and exchanged: centralized market has fixed regulations and monitoring authority. While decentralized market gives floor to trade and exchange forex, forward or option: decentralized market is based on over the counter place with no strict regulation.

 

[mason_ritter]

Which type of trading do you prefer?

 

[new_trader]

Futures

Two parties agree in a futures contract to buy a tangible or intangible product or asset at a specified price and on a specified future date. The traded asset is called the underlying and may be a commodity, currency, interest rate, stock market index or catastrophic insurance loss. The trade date is called the settlement or maturity date. The agreed price is called the futures price. Both parties are obligated to carry out the contract.

I know it's an old thread, but this definition doesn't seem right. Two parties don't agree or specify anything. Futures are traded anonymously on an exchange and the price of the contract is locked in the instant the trade is made on the exchange. The reason they are called futures is because they have an expiry date in the future and that never changes. Eg/ e-mini S&P500 is always the 3rd Friday of the contract expiry month. Futures contracts are either cash settled or physically settled. Again, none of this is agreed in advance with anyone, each contract has settlement terms outlined by the relevant exchange.